Alamo Group Inc (ALG)
Pretax margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 175,120 | 173,138 | 163,203 | 153,987 | 134,310 | 121,072 | 115,175 | 111,807 | 109,498 | 96,856 | 96,576 | 80,032 | 78,583 | 79,001 | 74,785 | 84,496 | 84,402 | 94,158 | 97,624 | 95,481 |
| Revenue (ttm) | US$ in thousands | 1,689,163 | 1,650,337 | 1,602,481 | 1,561,649 | 1,513,482 | 1,458,602 | 1,429,194 | 1,380,865 | 1,330,676 | 1,290,046 | 1,242,693 | 1,162,691 | 1,163,174 | 1,167,345 | 1,149,039 | 1,167,596 | 1,118,586 | 1,073,880 | 1,060,061 | 1,032,438 |
| Pretax margin | 10.37% | 10.49% | 10.18% | 9.86% | 8.87% | 8.30% | 8.06% | 8.10% | 8.23% | 7.51% | 7.77% | 6.88% | 6.76% | 6.77% | 6.51% | 7.24% | 7.55% | 8.77% | 9.21% | 9.25% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $175,120K ÷ $1,689,163K
= 10.37%
The pretax margin of Alamo Group Inc. has shown a generally increasing trend over the past eight quarters, reflecting improvements in the company's operating efficiency and effectiveness in generating profits before taxes. In the most recent quarter (Q4 2023), the pretax margin reached 10.36%, representing a slight decrease from the previous quarter but remaining at relatively healthy levels.
The company has managed to maintain pretax margins above 8% consistently, with a significant improvement from 8.07% in Q1 2022 to above 10% in the recent quarters. This upward trend suggests that Alamo Group Inc. has been able to effectively manage its operating expenses and generate higher profitability from its operations. The gradual increase in pretax margin indicates the company's capability to control costs while increasing revenues, resulting in a stronger bottom line.
Overall, the consistent improvement in pretax margin demonstrates Alamo Group Inc.'s commitment to operational efficiency and financial performance, which could be positively perceived by investors and stakeholders as a signal of the company's sustainable profitability.
Peer comparison
Dec 31, 2023